This article examines the transformation in the social function of art in Iran during the period of Nāser al-Din Shāh Qājār (r. 1848–1896), hypothesizing that Sani’-ol-Molk’s “Naqqāsh-khāneh Dowlatī” (State Painting School), established in 1861 CE (1278 AH), was a dual-function institution and a pivotal turning point in Iranian art history. In contrast to the traditional, introverted master-apprentice system that confined art as a “sacred secret” within private workshops, this institution acted as the first “public art gallery” in Iran. Drawing on the analysis of primary sources, particularly official announcements in the Dowlat-e 'Aliyye-ye Irān newspaper, and contextualizing the transformations following Sani’-ol-Molk’s journey to Europe, this research analyzes its two functions. The findings indicate that, on one hand, the Naqqāsh-khāneh shattered the exclusive traditional educational system by offering a codified, European-style curriculum and issuing a public call for students. On the other hand, by dedicating Fridays for visits by “all other guilds,” it consciously created a space for the “public exhibition” of art. This act was a fundamental rupture that transformed art from a private affair into a social phenomenon, created the concept of the “audience,” redefined the social status of the artist, and laid the foundation for modern art institutions in Iran.